TSP withdrawal and Required Minimum Distributions


Q. I need to make a Required Minimum Distribution from my TSP account. Every time I call TSP for instructions on how to put this in place I get a different answer. Will TSP send me a form or letter with instructions, or do I have to initiate some type of action on my own?

A. You may submit form TSP-77 to request a partial lump-sum withdrawal and/or submit form TSP-70 to request automatic monthly payments. Once you begin the automatic payments, the TSP will make sure that your RMD is made by the end of the year. That means that if you start monthly payments now, you’ll receive an extra check at the end of the year to make up any deficiency. If you don’t want your first payment until the following year, use the partial withdrawal for your first payment, and then start the monthly payments for the next year.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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